Village factors influencing the effectiveness of village fund program by Indonesian government in empowering local community economy in Merauke Regency

This research aims to examine the village factors influencing the effectiveness of Village Fund program which are human resources, socio culture environment, and natural resources in Merauke Regency. This is a quantitative research with data obtained from 179 respondents which are all the Village Head in Merauke Regency. The results show that the village factors have a significant effect in empowering local community economy in Merauke Regency. Human resources include most of head villages are bachelor graduates, have shown an adequate skill to prepare and deliver Village Fund program and are able to prepare village financial report using accounting approach with consistent assistance from the District Government. Socio culture environment has been receiving development program which serves each community characteristic need, even though there are still cases found on the child mortality rate, malnourished child rate, and difficulties in increasing numbers of access to a higher education. Natural recourses commodity and tourism are being cultivated although it is still needed much attention such as finding the products' market, attracting tourist, improving infrastructure, Village Fund also has been used to promote sustainable use of natural resources although there are still difficulties in reaching out to those land users such as palm oil companies, this nevertheless needs future research. Furthermore, surveys in other cities are needed for future research, it is recommended that future research employs qualitative methods to see any difference in the results.